Citrus Bowl Haste Makes Waste City Used Own Money, Lost Earnings

Orlando taxpayers have lost nearly $1.3 million because the city started expanding the Florida Citrus Bowl before completing a deal to pay for the project.

With financing in limbo, the city has spent almost $30 million in cash reserves improving the stadium during the past 16 months. If the money had been invested like other reserves, it would have earned $1.28 million in interest, city administra- tors said.

The city, which manages the 48-year-old stadium, wants to borrow $33.6 million to replenish its funds, and repay the debt with the tourist tax on hotel rooms.

But the city cannot get a loan because Orange County, which controls the tourist tax, has not accepted any of Orlando's financing ideas.

County budget experts are studying the city's latest proposition. ''It's a good plan, but it's fairly complicated,'' said assistant county administrator Tom Ackert.

The county commission is supposed to discuss the proposal today.

A yes can't come too soon for the city. It has drained millions from three different accounts to pay for improving the stadium, which has not made a profit in at least nine years.

''Let's get off the dime,'' said City Council member Jeff Clark, who pushed hard for the expansion. ''I don't want to lose another dime on it.''

The city's loss should not cause a reduction of services or programs, at least in the near future, promised city comptroller Rob Garner. The unrealized interest, he said, would have been placed in a fund for long-term projects such as enlarging sewer plants. ''Nobody is getting hurt here,'' Garner said. ''It's not going to stop anybody from doing anything.''

The loss, however, is not cause for celebration at City Hall.

Brenda Robinson, the city's deputy chief administrator, said officials never expected to pay for so much of the expansion bill up front. ''We had hoped to consummate the deal fairly quickly,'' she said.

Robinson and others said financing has been delayed by several problems, including a drawn-out dispute between the county and city over how much should be spent and what should be built.

At first, both sides were in accord, deciding in late 1988 to spend $30 million, much of it to increase the stadium's seating capacity from 52,000 to 72,000.

City and county officials were swayed by Citrus Bowl backers who argued that a bigger, better stadium would enhance Orlando's image by attracting top-notch college teams to the annual bowl game. It also would act as a lure for professional football, they said.

The Sunday before the county commission voted, the promoters of the bowl game, the Florida Citrus Sports Association, took out a full-page ad in The Orlando Sentinel detailing the benefits of a larger stadium.

The expansion design began in December 1988, and construction started a few months later. But the project went over budget, causing the city to reduce expenses by eliminating sky boxes, a facade, elevators, new locker rooms and an office complex.

Stadium supporters, though, lobbied for the return of those items, saying the additions - worth about $5 million - would transform the Citrus Bowl from a ''Ford to a Cadillac.''

County and tourist industry officials balked. They did not want to spend more, arguing that the money should go for expanding the Orange County Convention and Civic Center.

Hoteliers see the center as a key to the area's tourist economy, noting that it had 321,235 visitors for trade shows last year.

A compromise was reached in January when the county agreed to an extra $3.6 million for everything that had been removed, except the sky boxes.

Private investors, backed by the city's $1 million loan guarantee, agreed to pay for the boxes.

The haggling may have slowed the financing, but it did not delay construction.

Garner said the city took $8.75 million from the general operating fund, $10 million from the sewer improvement fund and $10 million from the utility services fund.

If and when bonds are sold to pay for the expansion, Garner said, money pulled from each fund will be replaced.

After months of negotiation, the county agreed to pay up to $400,000 to cover the city's interest losses above the $1.3 million.

But at least one county commissioner is less than sympathetic to the city's fiscal plight.

''I can't imagine going out and starting construction and not having my finances in order,'' said Bill Donegan, acting commission chairman.

Commissioner Linda Chapin, who helped fashion the compromise about the sky boxes and other extras, is a little more charitable. She hopes the city gets the $33.6 million soon.

''We want to move quickly on it,'' Chapin said. But the county staff, she said, is having difficulty understanding the city's ''obtuse, intricate financial plan.''

Because of the cost overruns and changes in design, the city has devised and refined several financing proposals, the most recent of which was submitted to the county in February.